Theresa May rolls the dice again
Pound - GBP
Another meaningful vote ahead?
Last week Sterling fluctuated on Brexit developments, such as Theresa May securing changes to her deal and the subsequent votes that followed. There’s some optimism that the British PM might finally make her Brexit deal successful on the third attempt, with the potential for another meaningful vote today or tomorrow. Failure to get it approved could result in a lengthy delay out of the EU or run the risk of no Brexit at all. Tuesday could be an interesting day for the Pound exchange rate with the latest UK labour market figures due out. Wednesday will continue with more influential data, this time in the form of UK inflation readings. On Thursday the Bank of England (BoE) will release its latest interest rate decision, and while no change is expected, any comments from central bankers could offer Sterling some direction.
Euro - EUR
Investors eye economic sentiment in struggling Eurozone
The Euro has been able to climb against the US Dollar as expectations that Wednesday’s Federal Reserve announcement will be dovish continue to pressure the Greenback. The Euro might have some reason to move on Tuesday when the Eurozone and German ZEW surveys are released. The surveys offer insight into sentiment and could be influential for the Euro. Meanwhile, the European Central Bank (ECB) will publish it’s Economic Bulletin on Thursday, and Friday will see German manufacturing and service sector data.
US Dollar - USD
US Federal Reserve to announce latest interest rate decision
The most influential economic event for the US Dollar this week will likely be Wednesday when the US Federal Reserve announces its March interest rate call. The US currency has been feeling the pressure as investors expect the Federal Reserve to take a dovish turn. Given a spate of mostly disappointing economic readings towards the end of last week, there’s an expectation the central bank may suggest interest rates will stay on hold. The Dollar is experiencing some weakness ahead of the meeting, and a dovish monetary policy outlook (which would see interest rates remain lower for longer) could keep the US Dollar under pressure. Meanwhile, manufacturing and service sector data will be out on Friday, along with home sales numbers.
Australian Dollar - AUD
RBA meeting minutes ahead
The Reserve Bank of Australia (RBA) March meeting minutes will be released on Tuesday, and markets will closely follow comments. The Australian Dollar may experience some movement in Thursday’s Trans-Tasman session when the latest Australian Unemployment Rate and Employment Change stats are released. The Australian and New Zealand Dollars are often very susceptible to risk appetite and geopolitical events, meaning any external developments may impact their value in the week ahead.
New Zealand Dollar - NZD
New Zealand services sector posts weaker growth
Overnight, the New Zealand Performance of Services Index noted a decline in February, dipping below the long-term average. Markets will be keeping an eye on services data moving forwards given that the sector makes up around two-thirds of New Zealand’s economic activity. The fourth quarter New Zealand growth readings will be out on Wednesday, which could prove very influential for the Kiwi Dollar. On the year, the ecostat is expected to print lower at 2.5%, down from the previous 2.6% reading.
Canadian Dollar - CAD
Canadian inflation ahead
It’s a quiet week ahead for Canadian economic data, but Friday may be a day of interest for those investing in the Loonie. The January Canadian Retail Sales stat will reach markets, as well as the highly influential Consumer Price Index for February. Inflation is expected to hold steady on the year in February, at 1.40%. Any dip below this level could put pressure on the Canadian currency.